Getting a job as an entrepreneur is a fantastic opportunity. You may be able to find work on your own without relying on others, indicating that you desire to be in charge of your career. The secret that makes you a successful business is this ambitious feeling.
Even if you want to be an entrepreneur and establish a new business, there are some practical measures that must be followed in order for your firm to flourish in Ontario. When you create a new business or organisation, one of the first things you should do is to register it.
In general, part of the responsibilities may be starting a new company. While launching your company in Ontario, you’ll need to fill in the following forms. However, establishing your company has become a reasonably straightforward and cost-effective procedure. You can acquire this digitally, as a single individual, and via post.
This article will offer a thorough overview of the steps involved in company registration in Ontario, as well as the benefits of doing so in this thriving province.
Why Choose Ontario for Company Registration?
Ontario is Canada’s most populous territory and a significant economic hub. Ontario has many benefits for business owners, including a vibrant business environment and accessibility to international markets.
These include capable personnel, a solid infrastructure, a varied consumer base, and an environment that fosters business expansion. The robust economy, varied market, and welcoming business environment of Ontario make it an ideal place to launch a firm.
Who is eligible to register a business in Ontario?
In Ontario, any individual or group of individuals who meet the legal requirements, including Canadian citizens, permanent residents, and non-residents, can register a business.
To register, you must be at least 18 years old. If you are under the age of 18, you may need the assistance of a parent or legal guardian to complete the registration procedure.
- Permanent Resident: Citizens and permanent residents can choose from a variety of company formations, including sole proprietorships, partnerships, companies, and cooperatives.
- Non-Permanent Resident: You may still register as a business owner as a non-resident, provided your firm meets the registration criteria. However, you may be required to take extra steps later in the process. If you want to establish your firm as a non-resident, for example, a quarter of the corporation’s directors must be Canadian citizens or permanent residents.
Steps for Company Registration in Ontario
The steps that have to be followed for company registration in Ontario are explained below.
1. Registering and Reserving the Business Name
The first step for company registration in Ontario entails selecting a name for your organization that is original and different from the names of any already established organizations. After choosing a name, you can reserve it for a set amount of time.
Perform a name search in order to make sure that the selected name is available and adheres to the name requirements set by the Ministry of Government and Consumer Services.
Note: While conducting a name search, it is advantageous to have a NUANS report. This report contains details of the business names and marks in Canada that are comparable to the name you’ve chosen.
2. Prepare the Articles of Incorporation
Prepare the incorporation articles, which explain your company’s legal structure and rules. This document includes details such as the company’s name, address, purpose, share structure, and initial directors.
3. Determine the Share Structure
Determine the share structure of your company, including the number and classes of shares. Specify the rights and privileges associated with each class of shares. Identify the initial shareholders and their respective shareholdings.
4. Director and Officer Information
Give details about your business’s officers and directors. This information consists of their names, addresses, and roles within the business. At least one director is required for Ontario corporations.
5. Register the Business
Fill out the required registration paperwork, then submit it to the Ontario government. Forms for the registration process can be submitted in person or by mail, electronically via the Ontario Business Registry.
6. Federal Business Number (BN)
Apply for a Federal Business Number (BN) through the Canada Revenue Agency (CRA). The BN serves as a unique identifier for your business and is necessary for various tax-related obligations.
7. Tax Registration
If applicable, register for provincial taxes such as the Harmonized Sales Tax (HST) with the Ministry of Finance.
Documents Required to Register a Company in Ontario
- Articles of Association
- NUANS report
- Details of the registered office address
- Evidence that fees have been paid
- Details of the directors and offices
- Any other necessary paperwork
Types of Businesses in Ontario
Before proceeding with company registration, it’s essential to determine the appropriate business structure for your venture. Ontario offers several options, including sole proprietorship, partnership, corporation, and cooperative. Each entity has its benefits and drawbacks, depending on liability, taxation, and ownership.
The various forms of businesses for company registration in Ontario include:
1. Sole Proprietorship
A sole proprietorship is among the simplest form of business structure which is formed with one owner. Owners of sole proprietorships have unlimited responsibility, which means they are exclusively liable for all obligations of the company.
Advantages of Sole Proprietorship
- It is quick, simple, and less expensive.
- The proprietor has complete ownership and authority to make choices.
2. Partnership
When two or more people or businesses operate an organization with the intention of making money, a partnership is immediately created. In such businesses, all of the profits generated belong to the partners, however, each partner is individually liable for the commitments made in the agreements agreed upon by the partners.
Advantages of Partnership
- Decision-making power is shared between partners.
- The partnership is not liable for income tax on its own. The partners rather include their portion of the partnership’s revenue on their individual tax filings.
3. Corporations
A Canadian corporation is a type of legal organization that exists independently of its proprietor. The corporation possesses the assets and the obligations, instead of the stockholders.
A company has the legal right to possess properties in its personal name and to bring and defend legal actions. You have the option to establish the business on a federal or provincial level, and each choice has benefits and drawbacks of its own.
Advantages of Corporations
- Limited liability protection
- Ownership can be transferred.
4. Co-operatives
A cooperative is a structure that is run and managed by its owners. It may be formed as a profit organization or a non-profit organization. It can be established provincially or federally, much like a corporation.
Advantages of Co-operatives
- Provides limited liability
- Revenue generated will be split between the members.
- Cooperatives are democratically operated, therefore each member has one vote.
Advantages of Ontario Company Registration
Registering your company in Ontario provides numerous advantages:
- Access to a diverse and affluent consumer market
- Proximity to major North American markets
- Availability of skilled workforce
- Supportive business ecosystem
- Infrastructure and transportation networks
- Research and development opportunities
- Participation in government procurement programs
What is the Cost to Open a Business in Ontario?
The cost of incorporation for a company in Ontario is much higher, between CA$5000 and CA$5500.
OnDemand International provides a cheaper and less time-consuming process. The cost of incorporation is about CA$3400, which includes some of the best services.
- LLC Setup with One Director
- Business name check and reservation
- Physical Bank Assistance (RBC & ICICI Vancouver)
- Faster Business Incorporation
- 1 year office contract
- KYC
- Document Legalisation
- National Court Fees
- Worry-Free Compliances
- Board Members Appointments
Best Businesses to Incorporate in Ontario
Some of the best business to incorporate in Ontario are mentioned below:
- Technology and Software Development: With Toronto being Canada’s tech hub, Ontario offers ample opportunities for software companies, app developers, and tech startups.
- Real Estate and Property Management: The high demand for real estate services makes property management and real estate investing lucrative businesses in Ontario.
- Healthcare and Wellness: Health and wellness services are rapidly expanding. There is strong demand for mental health services, physiotherapy clinics, and wellness coaching.
- Green Energy and Sustainability: Ontario’s government encourages eco-friendly initiatives, making green energy solutions a prosperous business choice.
Small Business Grants in Ontario
Ontario provides a variety of grants to support small businesses at different stages of growth. Here are a few key programs:
- Ontario Small Business Support Grant: This grant offers up to CAD 20,000 to eligible small businesses to help cover expenses and keep operations running smoothly.
- Starter Company Plus: This program provides mentorship and up to CAD 5,000 in funding for new businesses, including guidance on business planning and marketing.
- Digital Main Street Grant: Ideal for businesses transitioning online, this grant provides up to CAD 2,500 to adopt digital technology solutions.
- Northern Ontario Heritage Fund Corporation (NOHFC): Specifically for businesses in Northern Ontario, this fund supports new businesses with capital costs and operational expenses.
Conclusion
Having a business registered in Ontario can provide investors a number of advantages, including access to a wealthy and diverse consumer market, close proximity to important North American markets, the availability of a trained labour, and a well-developed infrastructure and transportation system.
All of this will help business owners expand their operations over the long term and boost trade with the country while enabling them to reach a sizable market for the sale of their goods.
If you are looking to do company registration in Ontario, consult with our business formation professionals at OnDemand International. Our professionals will guide with the procedure to set up a business in Ontario.
FAQ’s
Registration of Sole Proprietorship is the easiest form of business in Ontario. This form of business is mainly operated by a sole individual who wishes to operate the firm under their own name without the requirement for a distinct legal organization.
No, Ontario corporations do not have a minimum age requirement for directors or officers. It’s crucial to check that the people chosen for the positions have the legal criteria and qualifications necessary for them.
The duration of time it takes to enroll an organization in Ontario might change based on a number of elements. To ensure a quick and easy registration process, it is advised to speak with Canadian desk from OnDemand International today.
Yes, continuing compliance requirements apply to established corporations in Ontario. This includes submitting yearly returns, keeping accurate financial records, and paying taxes owed. It is essential to remain knowledgeable about these standards and adhere to them.
After establishing your firm in Ontario, it is possible to modify the name of your corporation. To make sure that the required procedures are followed, it is advised to check with legal experts because the method and requirements for name changes may differ.
